“`html
Key Points
-
Rising AI infrastructure spend bodes well for data center services and GPU designers.
-
Access to high-caliber memory and storage solutions is set to increase alongside the demand for GPUs.
-
Micron Technology, which has a growing high-bandwidth memory solutions business, trades at a significant discount compared to other leading semiconductor stocks.
In Q2 2025, tech giants like Alphabet, Meta Platforms, Microsoft, and Amazon are projected to collectively invest over $330 billion in AI infrastructure, focusing on data center buildouts, networking equipment, and servers. This surge in spending is expected to benefit GPU designers such as Nvidia and AMD.
Micron Technology (NASDAQ: MU) is positioned to gain from increased AI infrastructure spending due to its high-bandwidth memory (HBM) solutions, essential for optimizing GPU performance. The total addressable market for HBM is estimated at $4 billion in 2023, growing at a 42% compound annual growth rate, potentially reaching $130 billion by 2033.
“`
